Question and answer
If the inflation rate in 1996 was tripled and the house price index was only affected by inflation, what would be the House Price Index Outside the Capital starting in 1997?
Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. The price increases that result from the rapid [ money creation creates a vicious circle, requiring ever growing amounts of new money creation to fund government activities. Hence both monetary
inflation and price inflation proceed at a rapid pace. Such rapidly increasing prices cause widespread unwillingness of the local population to hold the local currency as it rapidly loses its buying power. Instead they quickly spend any money they receive, which increases the velocity of money flow; this in turn causes further acceleration in prices.[6] This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.[7] Governments have sometimes resorted to excessively loose monetary policy, as it allows a government to devalue its debts and reduce (or avoid) a tax increase. Inflation is effectively a regressive tax on the users of money,[8] but less overt than levied taxes and is therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months later. ]
Expert answered|dkecter|Points 50|
Question
Asked 11/18/2012 2:10:51 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
18,454,873 questions answered
Popular Conversations
Give the values of a, b, and c from the general form of the equation ...
Weegy: hen the following quadratic equation is written in general form, what is the value of "c"? The formula of ...
11/26/2014 8:05:05 AM| 3 Answers
An object is dropped off a building that is 144 feet tall. After how ...
Weegy: 16t^2 = 144 Simplify, divide both sides by 16 t^2 = 9 t = 3 seconds User: The square of a number exceeds that ...
11/26/2014 8:02:05 AM| 2 Answers
A girl is now one-fourth as old as her father, and in seven years, ...
Weegy: father's age = 20; daughter's age = 5 father's age = 52; daughter's age = 13 father's age = 76; daughter's age = ...
11/26/2014 8:26:45 AM| 2 Answers
. Simplify this expression: 4p + 9 + (–7p) + 2 = ? A. –3p + ...
Weegy: C. s=40 User: Solve this equation: 80 = 3y + 2y + 4 + 1. A. y = 75 B. y = 15 C. y = 1/5 D. y = –15 ...
11/26/2014 8:28:06 AM| 2 Answers
White blood cells contain hemoglobin. (Points : 2) True ...
Weegy: hemoglobin stands for: a hemoprotein composed of globin and heme that gives red blood cells their characteristic ...
11/26/2014 12:44:06 PM| 2 Answers
double marginality
Weegy: According to Nicholas Alex, double marginality is the social burden that African American police officers carry ...
11/26/2014 2:10:01 PM| 2 Answers
If the protagonist tells the story himself, it is told in the ...
Weegy: The story is told in first person if it is told from the protagonist's point of view :)
11/26/2014 2:15:57 PM| 2 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2814 [Total 14524]| Ratings 10| Comments 2714| Invitations 0|Offline
S
L
Points 1466 [Total 3752]| Ratings 0| Comments 1466| Invitations 0|Offline
S
Points 798 [Total 830]| Ratings 1| Comments 788| Invitations 0|Offline
S
L
Points 777 [Total 1298]| Ratings 6| Comments 717| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 772 [Total 14146]| Ratings 0| Comments 772| Invitations 0|Offline
S
1
L
L
Points 273 [Total 6667]| Ratings 0| Comments 273| Invitations 0|Offline
S
L
Points 162 [Total 1458]| Ratings 3| Comments 132| Invitations 0|Offline
S
Points 86 [Total 86]| Ratings 1| Comments 76| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.